can withdraw fully or partially some of the extraordinary liquidity tightening it had done to support the rupee including ceiling on LAF and steep hike in MSF. As a first measure it can ease MSF by 50 bps with a timeline for further reduction, consistent with the promise of transparent and predictable course of policy articulated by Rajan,” said Motilal Oswal, CMD, Motilal Oswal Financial Services.

“There is a chance that RBI may reverse partly, the monetary tightening measures it took during the second week of July 2013 and afterwards to address the currency crisis,” said V Balasubramanian, Fund manager, IDBI Mutual Fund.